Corporate Social Responsibility as Tool For Risk Management J Sainsbury Plc
Problems have been reported with regard to working on similar objectives. In this regard, a landmark, 10-year study conducted by Mayle (2006) suggested that researchers should focus on how firms must actually manage their stakeholders rather than empirically validating inherently untestable frameworks of social responsiveness. (p. 26) With this in mind, I feel that it is necessary to examine J Sainsbury Plc’s CSR performance, particularly in the development of a framework aimed at determining links to risk management.The management of actual risks is a complicated issue. For J Sainsbury Plc, risk management strategy is largely dominated by extensive merchandising and advertising that require enormous investments. For instance, there was the use of celebrity chef Jamie Oliver in its advertising campaign to promote J Sainsbury Plc as the best choice of the supermarket for those interested in healthy eating. (Harris 2009, p. 73-74) This kind of strategy has been anchored mainly on commercial or market-driven reasons. Unfortunately, this is a shallow approach to risk management and poorly addresses those so-called lifestyle risks.According to Visser, Matten, and Pohl (2007), individual companies or industries are often held responsible for these lifestyle risks and that as governments are unwilling and often unable to regulate these issues, we see an increasing social expectation of society addressed at companies to assume responsibility for these lifestyle risks. (p. 405) In this regard, one sees that studying and implementing Corporate Social Responsibility as a tool in risk management is important in two ways: first, CSR could address the risks that directly harm the company. secondly, CSR also changes the hearts and minds of its consumers and the market in the way it is associated with the risks that result on commercial activities that produce lifestyle risks such as global warming.